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Entry modes in International Marketing Hollensen

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Which is not part of Desired Mode Characteristics

a)

Risk

b)

Control

c)

Flexibility

d)

Competitiveness

2.

Small firm size influences in the direction of

a)

Hierarchical mode

b)

Intermediate mode

c)

Export mode

3.

If intensity of competition is seen as very high, this points in the direction of

a)

Externalization

b)

Internalization

4.

Which mode of export refers to a manufacturer’s use of independent export organizations located in its own country (or a third country)?

a)

Indirect export mode

b)

Direct export mode

c)

Cooperative export

5.

Piggyback export mode can be described as

a)

an export set up where firms use a bigger partner in the foreign market for down-stream functions

b)

An indirect mode of export which entails an inexperienced firm ‘riding’ on the capabilities of a larger company already experienced in foreign markets

c)

an export set up where firms use a bigger partner in the foreign market for up-stream functions

d)

Small firms being bought by a bigger home market firm (the "Piggybacker") when they have proven succesful in foreign markets

6.

What is contract manufacturing

a)

The company manages its entire value chain in the foreign market except for contracting logistics

b)

When a local (foreign) lawyer helps prepare contracts with agents or distributors

c)

The production is made by a foreign firm; the rest of the value chain is taken care of by the company itself

d)

When a foreign firm decides to outsource its down-stream functions to an external partner

7.

When working with Franchising and/or Licensing the difference is that

a)

When licensing the foreign firm does not handle marketing

b)

When licensing the foreign firm handles marketing

c)

When franchising the foreign firm does not handle marketing

d)

When franchising the foreign firm handles marketing

8.

Which mode is franchising

a)

Export mode

b)

Intermediate mode

c)

Hierarchical mode

9.

What does Ethnocentric orientation mean

a)

The company views regions as unique and seeks to develop an integrated regional strategy

b)

The company assumes that its home country is superior to the rest of the world

c)

The company views the entire world as a potential market and strives to develop integrated world market strategies

d)

The company assumes that each country in which the company does business is unique

10.

What term could refer to an equity partnership between two or more partners

a)

X coalition

b)

Y coalition

c)

Joint venture

d)

Licensing